What will happen to the Real Estate market?

Question

Investors,

there are no right or wrong answers to this question, everyone please feel free to answer. In your opinion, what do you think will happen to your local, or national real estate market in the next year or two and why? Cheers :)

Bob Prisco · Answer

@Dylan Topolnisky I can guarantee you it will go up and down :) If you are into it for cash flow, who cares about up or down, 10 -20% ? If you get 10% +++ net caps, again who cares. You still collect your rent, Long term thinking always wins

Good Luck

M. Anthony Contrascere · Answer

At least in the CO Springs area, our market was so strong before this virus hit, so Im suspecting there wont be as much of an impact here as other places with weaker markets.  On the flip side, you can’t put a third of Americans out of work and not expect to see it impact everything, including housing.  We have no precedent for what is happening though, so no one is really sure of when it will start to really impact the market.  For example, between mortgage forbearance being mandated and the time it takes to foreclose, it could easily be 6-12 months before we see any foreclosure related sales.Anything written by a realtor or published by any organization in the real estate industry (NAR, HBA, PPAR, Lenders, etc.) should not be trusted.  It will almost certainly be overly optimistic until something negatives hits them like a wrecking ball across the face.  Unfortunately Im already seeing real estate entities put out misleadingly optimistic information. We'll see how that changes in the near future. Just read all of real estate forecasts with caution and discernment!

Danni Catambay · Answer

I'm guessing it's going dormant, like everything else, for a while. My local ears are hearing that people just don't want to make big changes right now -- buying or selling -- because of the uncertainty.

But what will happen for sure is that mortgage and eviction protections will lift and people who have destroyed their savings will be hungry for cash. I foresee a huge surge in supply of single family properties in the months after things open up again.

I'm personally planning to rake in. I have access to enough cash to pick up at least three new properties as rentals and as a wholesaler I'm planning to move a ton of inventory.

So all you investors out there: hold on to that cash cuz I'm gonna have deals galore!

Aigo Pyles · Answer

COVID has affected the local market these days. Some of real estate investors would want to pause for a while and hold their extra cash because of the situation right now. I think the market will go down for a while. But it will surely go up again. It is real estate.

Gail W. · Answer

Here in South central Illinois, it seems to me investors have slowed their buying but not stopped entirely. I do believe rents may come down a little but not a lot as the rents are already fairly low compared to the rest of the country. This area is hard hit by a loss of jobs and HIGH taxes. Property taxes are very high here and state income tax also so landlords and tenants both take the tax hit. Appreciation has been slower here than elsewhere in the country except for the last couple of years, so maybe the correction will wipe out any gains in value since 2017 or 2018.

In any case just my 2 cents. That and $1.50 will get you a cup of coffee most places.

Darson Grantham · Answer

@Ryan Rohlf The Iowa, specifically Des Moines market, will be very interesting IMO.  We, as a state, didn't do the full shutdown like many other states did and I wonder if that will ramp up or economy a bit faster than others.

OR it may be that other markets dropped fast and will recover fast (the now famous V shape recover).

It will be so interesting to look back in 1-5 years and compare different markets.

Wishing everyone the best!

Russell Brazil · Answer

Highly specific to the local market, and even varyied within each market.

Armando Gomez · Answer

@Danni Catambay

I will be ready to buy

Guy Bouchard · Answer

Like Vegas and other tourism cities. RE prices will decline.

What will happen to the Real Estate market?

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